Uncertain Times

Sep 1, 2011

Investment bankers focused on Latin America may have had a
profitable year so far, but the last quarter looks less than
promising against an increasingly rocky backdrop.

Optimism in the credit markets had been running high amid
expectations that a September rush would soon be under way
despite underlying uncertainties. But investors have had little
good news to embrace during the last few days of summer in a
market that has been increasingly characterized by much
uncertainty and volatility.

Weak unemployment figures in August have convinced many that
the US economy is now teetering and about to fall into a second
recession, while concerns about euro-zone debt is keeping
markets on tenterhooks. On top of that, economies around the
world seem to be in deceleration mode.

Central banks across Latin America are adjusting their views
on rates as they brace for weaker GDP...